Bitcoin - High Transaction Fees: A Sign of Growing Pains and a Stronger Network
I'm no expert on JPEGS, BRC-20, or even Bitcoin, but I enjoy learning and sharing my thoughts on these topics as I continue to grow and discover new things.
Is this good for Bitcoin ? YES. If you pay the fee, there is no problem.
It is exciting, fun, and awesome to try something new. So much confusion and fear concerning Bitcoin due to this “more usage”. The base layer works as intended, and miners’ fees are at a record high.
Innovation on top of the Taproot upgrade “ordinals” “BRC-20” has led to an influx of spam transactions, putting the Bitcoin network to the test. This is what Bitcoin needs, which is very beneficial for Bitcoin in the long run as it tests and strengthens the network.
🚀 The Emergence of BRC-20 and Ordinals.
These are purely the result of the Taproot upgrade, and now “crypto degens” are doing what crypto degens do, experiment, have fun, do weird shit, and gamble the shit out of anything - Productizing the Bitcoin block space.
JPEGS - ordinals - NFT
BRC-20 - “memecoins”
This allows for creating new “asset classes” like BRC-20, which offers a "fair mint" issuance mechanism over several blocks. Those who pay the most for the block space receive an allocation known as proof-of-fees-paid.
→ Increased demand for Bitcoin's block space, resulting in higher fees.
🕰️ The Benefits for Miners and the Bitcoin Network:
Higher transaction fees undoubtedly benefit miners, who receive more rewards for processing these transactions. Additionally, the higher fees are a testament to the increased network usage, which ultimately strengthens Bitcoin's security and robustness.
443k unconfirmed TXs. Yeah it is pretty crazy at the moment. Bitcoin is still in its infancy, with a 500bn market cap, and how many people have even heard about Bitcoin?
The market will adapt to these changes, leading to a more resilient Bitcoin ecosystem. Solutions like the Lightning Network and Liquid Networks already exist, and more innovations will likely emerge in response to these growing pains. Binance is already hinting they will adopt lightning?
→ More innovations will likely emerge in response to these growing pains.
💡Conclusion
The market will find a way to harmonize and adapt to these changes, ultimately leading to a more robust and resilient Bitcoin ecosystem. Bitcoin is still in its infancy.
We are witnessing growing pains. Bitcoin, if anything, can withstand challenges and continues to grow and innovate.
Chill, have a lower time preference and stop the drama. Enjoy the ride as we watch the Bitcoin ecosystem evolve and mature.
Henkipatto
npub1ey…v9rxj
2023-05-08 17:48:29
Author Public Key
npub1eyfm3c7ns3qmsrzf0v7c6a6hz6rtp3846t8l83fz4dmjppcyxvkqvv9rxjPublished at
2023-05-08 17:48:29Event JSON
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"content": "Bitcoin - High Transaction Fees: A Sign of Growing Pains and a Stronger Network\n\n\nI'm no expert on JPEGS, BRC-20, or even Bitcoin, but I enjoy learning and sharing my thoughts on these topics as I continue to grow and discover new things.\n\nIs this good for Bitcoin ? YES. If you pay the fee, there is no problem.\n\nIt is exciting, fun, and awesome to try something new. So much confusion and fear concerning Bitcoin due to this “more usage”. The base layer works as intended, and miners’ fees are at a record high.\n\nInnovation on top of the Taproot upgrade “ordinals” “BRC-20” has led to an influx of spam transactions, putting the Bitcoin network to the test. This is what Bitcoin needs, which is very beneficial for Bitcoin in the long run as it tests and strengthens the network.\n\n🚀 The Emergence of BRC-20 and Ordinals.\n\nThese are purely the result of the Taproot upgrade, and now “crypto degens” are doing what crypto degens do, experiment, have fun, do weird shit, and gamble the shit out of anything - Productizing the Bitcoin block space.\n\nJPEGS - ordinals - NFT\n\nBRC-20 - “memecoins”\n\nThis allows for creating new “asset classes” like BRC-20, which offers a \"fair mint\" issuance mechanism over several blocks. Those who pay the most for the block space receive an allocation known as proof-of-fees-paid.\n\n→ Increased demand for Bitcoin's block space, resulting in higher fees.\n\n🕰️ The Benefits for Miners and the Bitcoin Network:\n\nHigher transaction fees undoubtedly benefit miners, who receive more rewards for processing these transactions. Additionally, the higher fees are a testament to the increased network usage, which ultimately strengthens Bitcoin's security and robustness.\n\n443k unconfirmed TXs. Yeah it is pretty crazy at the moment. Bitcoin is still in its infancy, with a 500bn market cap, and how many people have even heard about Bitcoin?\n\nThe market will adapt to these changes, leading to a more resilient Bitcoin ecosystem. Solutions like the Lightning Network and Liquid Networks already exist, and more innovations will likely emerge in response to these growing pains. Binance is already hinting they will adopt lightning?\n\n→ More innovations will likely emerge in response to these growing pains.\n\n💡Conclusion\n\nThe market will find a way to harmonize and adapt to these changes, ultimately leading to a more robust and resilient Bitcoin ecosystem. Bitcoin is still in its infancy.\n\nWe are witnessing growing pains. Bitcoin, if anything, can withstand challenges and continues to grow and innovate.\n\nChill, have a lower time preference and stop the drama. Enjoy the ride as we watch the Bitcoin ecosystem evolve and mature.",
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